Study On The Impact Of The Protection Of Financial Consumers' Legal Rights On The Financial Stability

With the deepening of financial liberalization and the rapid development of financial innovation,financial institutions continue to accumulate risk in the more and more complicated business environment.It's one of the most highlight topics for financial supervision institutions to stick to the bottom line of the explosion financial systemic risk and regional risk.Maintaining financial stability can not be separated from the protection of financial consumers' rights.The paper studies the impact of the protection of financial consumers' rights on financial stability and it's expected to provide theoretical and empirical support for the adjustment and improvement of China's financial consumer protection in the future,so as to develop better cooperation with the prudential supervision to promote the stability of the financial system.At first,this paper reviews theories on the protection of financial consumers'rights and the financial stability.On the comprehensive analysis of the related theoretical research on factors influencing financial stability with the study of the necessity to protect the financial consumers' rights,this paper expounds that it's important to strengthen the protection of financial consumers' rights for maintaining the stability of the financial system,and propose the conduction path from the protection of financial consumers' rights to financial stability.Then this paper summarizes the whole situation of the reform of the protection of financial consumers' rights in the world,and makes a concrete analysis of the latest practice of the protection of financial consumers' rights in the United States and the United Kingdom.However,it's uncertain that the series of regulatory measures can achieve the original intention of the system design to maintain the stability of the financial system?The paper conducts two empirical analysis.First,by using the cross-sectional data in the report?Global Survey on Consumer Protection and Financial Literacy:Oversight Frameworks and Practices in 114 Economies?released by the world bank in 2013,the paper builds indicators that reflect the degree of the protection of financial consumers' legal rights,and respectively conducts an empirical analysis on the relationship between the degree of the protection of financial consumers' legal rights and the financial stability.Besides,the paper also builds indicators that reflect the level of the protection of financial consumers' legal rights by using the data from the financial complaint database and the annual work report published by the CFPB and conducts an empirical analysis by using a sample of 40 banks during 2012-2015.The results show that the improvement of the protection of financial consumers' legal rights can not only enhance the stability of the financial system at the macro level,but also significantly improve the financial institutions in the micro levelAfter clarifying the positive role of the protection of financial consumers' legal rights in maintaining financial stability,the paper compares the protection of financial consumers' rights between China and the United States,and finds out the deficiency of the protection of financial consumers' rights in China.Based on the theoretical analysis and international experience,this paper expounds how to strengthen the protection of financial consumers' rights from the aspects of system construction,legal protection and financial education.